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Should MARA Stock Be in Your Portfolio Pre-Q2 Earnings?

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Key Takeaways

  • MARA is expected to post a Q2 loss of $0.49 per share on $228.9M in revenues, up 57.7% year over year.
  • MARA uses a dual Bitcoin mining strategy focused on revenue and asset accumulation for long-term gains.
  • The stock rose 21% in 3 months, trailing RIOT and HUT, despite strategic capacity and facility expansion.

Marathon Digital Holdings, Inc. (MARA - Free Report) is set to report second-quarter 2025 results on July 29, after the bell.

The Zacks Consensus Estimate for the bottom line is pegged at a loss of 49 cents per share compared with a loss of 24 cents in the year-ago quarter. The consensus mark for revenues is pinned at $228.9 million, indicating 57.7% year-over-year growth.

Earnings surpassed the Zacks Consensus Estimate in one of the past four quarters, matched once and missed in the other two, delivering an average surprise of 136.1%. The bottom-line estimate has remained unchanged in the past 30 days.

Bleak Chances of an Earnings Beat for MARA

Our proven model doesn’t conclusively predict an earnings beat for RIOT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

MARA has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dual Approach Should Boost MARA’s Revenues

MARA’s top line in the to-be-reported quarter is likely to have benefited from the company’s dual approach to Bitcoin mining, combining revenue generation with strategic asset accumulation. By leveraging its expansive and energy-efficient mining operations, it produces Bitcoin at lower costs, ensuring consistent revenue streams. MARA retains a significant portion of the Bitcoin it mines, positioning itself to capitalize on potential price appreciation over time.

MARA’s Price Dynamics

The stock has gained 21% over the past three months. Over this period, MARA’s competitors in the bitcoin-mining space, such as Riot Platforms, Inc. (RIOT - Free Report) and HuT 8 Corp. (HUT - Free Report) have gained 96% and 56%, respectively.

Pre-Earnings Investment Considerations

MARA remains a cautious hold amid a mixed performance landscape. Its strategic expansion through increased mining capacity and cost-effective facility acquisitions supports long-term growth. Additionally, the prospect of a crypto-friendly regulatory environment is likely to have provided a favorable tailwind for the company. Although its revenue generation appears robust, near-term profitability continues to face challenges. The firm’s balanced approach of combining immediate income with strategic asset accumulation suggests that investors should hold their positions while awaiting operational improvements and a supportive market backdrop.


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Marathon Digital Holdings, Inc. (MARA) - free report >>

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